Resistance seen at 909.1 for MCX Mentha Oil
Commodity Online | September 16 2016
UPDATED 12:21:05 IST

MCX Natural Gas under long liquidation; Resistance seen at 191.1

MCX Crude Oil under short covering; Support seen at 2876

MCX Silver under long liquidation; Resistance seen at 61260

MCX Gold under fresh selling; Support seen at 50092

NCDEX Jeera under fresh selling; Resistance seen at 14140

Mentha oil on MCX settled down by -0.83% at 901 amid fall in physical demand from major consuming industries in the domestic spot market. However, restricted supplies from Chandausi in Uttar Pradesh, capped some losses. Overall sentiments dropped as export and domestic demand are not picking up also as per last months udpate exports have registered a decline in volume terms. China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports which declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year.

Exports of mint products stood at 21,150 tonne in FY16 valued at R2,577.59 crore against 25,750 tonne valued at R2,689.25 crore in FY15. The Spices Board said that the bulk of the exports is in the form of crystallised menthol. Mentha oil prices have fallen almost more than 11% since last 1month from 992.80 level to test 880 level this week due to the fund crisis in the market and lower Chinese demand for Indian Mentha oil. Initially, India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year.

But, rainfalls later improved overall scenario that got worsened with scorching heat waves in May. At Barabanki market arrivals were reported at 400 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. At Chandausi market sources reported arrivals at 5 Drums(1-drum-180kg), steady as against previous day’s arrival. Mentha oil spot at Sambhal closed at 1034.10 per 1kg. Spot prices is down by Rs.-3.30/-.Technically now Menthaoil is getting support at 896 and below same could see a test of 891 level, and resistance is now likely to be seen at 909.1, a move above could see prices testing 917.2.

Trading Ideas:

--Mentha Oil trading range for the day is 891-917.2.

--Mentha Oil spot at Sambhal closed at 1034.10 per 1kg. Spot prices is down by Rs.-3.30/-.

--Mentha Oil prices dropped amid fall in physical demand from major consuming industries in the domestic spot market.

--Overall sentiments dropped as per last months udpate exports have registered a decline in volume terms.

--China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports.

Courtesy: Kedia Commodities

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